Acceptable levels of tax risk as a metric of corporate tax responsibility: theory, and a survey of practice

Quentin Clair ()
Additional contact information
Quentin Clair: Queen Mary University of London London, United Kingdom

Nordic Tax Journal, 2019, vol. 2019, issue 1, 1-15

Abstract: Prescribed levels of acceptable tax risk are increasingly used to articulate degrees of corporate tax responsibility, but the theoretical basis for doing so is not well established. This article (i) develops a theory of the relationship between tax risk and tax responsibility and (ii) shows that acceptable levels of tax risk could be used as a meaningful metric for these purposes, provided that the filing positions a n ticipated from proposed planning are reviewed against the prescribed level of acceptable risk without taking into account any mitigation of the risk factors that are introduced by the planning. Further, the article reviews the evolving tax risk policies of 20 large European companies, showing that while some progress is being made towards meaningful discourse, even the companies with the most well-developed policies are still making their claims in such a way as to conflate socially responsible tax behavior with diligence in implementing antisocial tax behavior.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/ntaxj-2019-0001 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:notajo:v:2019:y:2019:i:1:p:1-15:n:1

DOI: 10.1515/ntaxj-2019-0001

Access Statistics for this article

Nordic Tax Journal is currently edited by Axel Hilling

More articles in Nordic Tax Journal from Sciendo
Bibliographic data for series maintained by Peter Golla ().